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LVMH is betting on mystery boxes with the intention of applying it to the luxury market with Heat. Heat boxes contain luxury staples from Saint Laurent and Celine to Off-White, Palm Angels and Heron Preston. This is the new way to capture the Gen-Z hypebeasts.
Mystery boxes work like this: shoppers pay a fixed price to receive a surprise selection of products. They first became popular in the beauty industry in early 2010 as a way to introduce new products to new consumers and end product overstocking.
In recent years, these mystery boxes increased in popularity due to the resale boom and a pandemic that led consumers to shop more online and for entertainment. In addition, discount-averse luxury brands found themselves with high inventory levels.
This practice is already being introduced by brands such as GCDS on Black Friday last year which sold a series of themed mystery boxes, as well as the Sunnei brand which launched a similar offer, with bundles containing a combination of pieces from other past collections.
The trend-setting brand has made deals with retailers such as Selfridges, Harrods and Browns to buy what they haven’t sold and also convinced more than 60 brands, including Loewe, Maison Margiela and Amiri, that mystery boxes are a powerful tool for winning customers.